Aligning Financial Literacy Framework Accordance to Maqasid Shariah Principle for Malaysia's B40

Abstract

This study explores the creation of a financial literacy framework specifically designed for Malaysia’s B40 group, based on the principles of Maqasid Shariah. The B40, which includes the lowest-income category in Malaysia, encounters considerable financial difficulties, such as limited access to formal banking services, high levels of debt, and low financial literacy. This research suggests incorporating Maqasid Shariah principles, which focus on ethical financial practices, wealth preservation, and social justice, into financial education and accounting models. By aligning financial literacy programs with these principles, the study seeks to improve engagement and offer practical, culturally relevant solutions for managing debt, saving, and investing. Data was gathered through informant interviews using the Focus Group Discussion (FGD) method and analyzed with the Nominal Group Technique (NGT) to pinpoint the significance, challenges, and potential solutions related to the financial issues faced by the B40 group. A total of 10 informants took part in this study. The findings indicate that culturally appropriate programs and better access to Shariah-compliant financial products can greatly enhance financial inclusion and resilience among the B40 population. This framework aims not only to promote long-term economic stability but also to encourage social equity, highlighting the need for financial literacy initiatives that align with the ethical and cultural values of Malaysia’s diverse communities.